M Tshabalala-Msimang: Introduction of Media Development and Diversity
Agency (MDDA) board members

29 January 2009

Media Development and Diversity Agency (MDDA) Board Members
MDDA CEO Mr Mtimde
Government officials
Media executives
Ladies and gentlemen

I would like to welcome you all to this momentous occasion, to officially
introduce new board members to the Media Development and Diversity Agency
(MDDA), as well as celebrate the achievement of the agency in its five-years of
issuing grants to facilitate the media development and diversity in South
Africa.

This comes a year after the ANC 52nd National Conference 2007 noted the
increasing concentration of ownership and control of the media, especially
print media. It was of the view that the initiatives that are in place to
diversify the ownership and control, views and opinions should be strengthened.
And in accordance with this, reaffirmed the need to accelerate the roll-out of
community radio stations, and similarly, that the MDDA should pay equal
attention to the development of community television and community print media
across the country, as well as facilitate the development of media aimed at
youth, women, children and people with disability. Access to information and a
diverse choice of media which is a fundamental right of all citizens especially
the poor.

Having said that, perhaps I should give a brief background on the MDDA, the
Agency which was established in 2003, in terms of the MDDA Act, No 14 of 2002,
to provide grant funding to community media projects, which effectively
commenced on 29 January 2004. The Constitution Act No. 108 of 1996 of South
Africa provides for the freedom of expression and access to information, in its
Section 16 and 32. The Media Development and Diversity Agency was established
by legislation (the MDDA Act No 14 of 2002) to create an enabling environment
for the development of media diversity in South Africa (radio, television,
newspapers, magazines and new media).

When the agency, was established through the MDDA Act No 14 of 2002,
government was responding to the call by media activists through the Comtask
report and the need to ensure every citizen has a right to information and a
right to communication. Government then set up this agency to create an
enabling environment for media development and diversity in South Africa,
through, amongst other things, providing financial support to community (non
profit) and small commercial media projects. The vision of the MDDA is that
"each and every South African Citizen should have access to a diverse range of
media."

The agency was set up as a partnership between the South African Government
and major print and broadcasting companies to assist in amongst others
developing community and small commercial media in South Africa. It receives
funding from the government through the Government Communication and
Information System (GCIS), as well as from major commercial entities such as
Caxton (Pty) Ltd Independent Newspaper Group, Avusa, Kagiso Media, Media24,
Midi Pty Ltd (etv), M-Net, Primedia Pty Ltd and the SABC.

The agency came into existence in the South African media landscape at the
right time. As a young democracy, only a decade into its democracy, South
Africa was auditing itself and grappling with delivery on its policies. At the
heart of this audit was looking at the Constitutional principles of freedom of
expression, equality, language equity, cultural diversity and
non-racialism.

From July 2006, through the Electronic Communications Act of 2005 (ECA),
government has again strengthened this intervention (at least on the
broadcasting industry side) through providing for the contribution of up to one
percent by the broadcasting service licensee to the universal service and
access objectives as outlined in both the MDDA Act and the Electronic
Communications Act. Section 89 of ECA provides for Broadcast Service Licensees
to contribute a percentage of their annual turnover to USAF in terms of a
regulation prescribed by the Authority (Icasa). Broadcast Service Licensees who
contribute funds to the MDDA will have their annual MDDA contribution set off
against the prescribed annual contribution. The Independent Communications
Authority of South Africa has accordingly acted and published a regulation on
10 October 2008, which prescribe that broadcast service licensees contribute
0,2% to either MDDA or USAF.

I understand that broadcasters are in discussion with the MDDA regarding
renewing the current funding agreements, aligning them to this ICASA regulation
and therefore continuing the five-year old relationship which has been to the
benefit of the MDDA Act and the industry at large. It is hoped that this new
legislative framework will ensure more growth, development and diversity of the
media industry.

I hope that the MDDA will grow to be a strong entity in order to make
meaningful impact to benefit the historically disadvantaged communities. The
need has been demonstrated by the record of applications received by the
Agency, going back since Jan 2004. These applications amounts to more than R150
million and the Agency has not been able to respond to all the need this far.
We are hoping that the Agency's financial capacity will grow in order to be
able to respond to the need adequately.

This new dispensation will enable the Agency to respond to the need in terms
of the applications received and to the development and diversity of the
broadcasting industry. In particular, this will result to the growth of the
broadcasting industry, more skills developed through the training and
mentorship programmes run through your support. These skills in turn will be to
the benefit of the entire broadcasting industry, job creation and economic
growth.

Further, we hope that the print media sector will follow suite and renew
their funding agreements with the Agency, reasonably increase their
contributions in support of the noble work of the Agency, thereby growing the
print media sector as well. We are cognisant of the challenges faced by the
sector and hope that within the constraints the sector have, they will still be
able to continue the relationship with MDDA. The government had increased its
contributions to the agency from initial R3 million to R16 million, with
further increase envisaged in the coming years.

I would first like to thank the founding contributors to the realisation of
this Agency, including Mr Joel Netshitenzhe (the former GCIS CEO), Mr Tony Trew
(the former GCIS Deputy CEO and MDDA Board member, whose term ended in December
2007), Ms Kanyi Mkonza, the former MDDA Chairperson and now SABC Board
Chairperson, whose term also ended in December 2007, former Board members (Mr
Connie Molusi, Ms Nunu Ntshingila, Ms Kerry Cullinan, Mr Govin Reddy, Dr
Mashilo Boloka, Ms Felleng Sekha and Ms Nomhle Canca), Ms Libby Lloyd (the
former MDDA CEO) and the support (without which there would have been no MDDA)
of the former President of the Republic, Mr Thabo Mbeki.

In 2006, MDDA ushered in a new management team to take over the day to day
running of the Agency. Under the leadership of Mr Lumko Mtimde, Chief Executive
Officer, the team has brought in a more pragmatic approach to the agency and is
managing the strategy that ensures that there is some form of media access for
communities in every district municipality by the end of three years.

In January 2008, the President of the Republic of South Africa then Mr Thabo
Mbeki appointed the agency's new Chairperson; Ms Gugu Msibi for a period of
five years as well as four new members to the Board: Ms Baby Tyawa, Ms Nomonde
Gongxeka, Professor Guy Berger and Mr Siviwe Minyi. Ms Ingrid Louw was seconded
by Print Media South Africa to replace Mr Connie Molusi in June 2008.

The term of office of Mr Chris Moerdyk (who is one of the oldest serving
members of the Board) and Mr Mazibuko Jara have come to an end. It is against
this background that I extend my gratitude to these servants of the people,
whose leadership has, ensured that the agency is what it is today. MDDA is a
body that is undoubtedly appreciated by all South Africans. Parliament is
impressed by its work, as witnessed at the last presentation the agency made in
September 2008 and a number of communities in underserved areas have enjoyed
the support of the MDDA. Mr Moerdyk and Mr Jara, I hope that you will join
other ambassadors of the Agency and continue to support its work.
Siyabonga.

This year the President, in terms of Section 4 (1) (b) of the MDDA Act, has
formally appointed five new Board members to serve on the MDDA Board for a term
of office of three years, who I now introduce to you:

* Ms Phumelele Ntombela-Nzimande (who works for SABC)
* Dr Tanja Bosch (who works for the University of Cape Town)
* Mr Dan Moyane (who works for Mazole Investments), as the broadcast media
representative)
* Ms Ingrid Louw (who works for Print Media SA, as a print media
representative,
* Ms Baby Tyawa (who works for GCIS).

I welcome you all and assure you that you are joining a strong, hard working
and collective team. You are also inheriting a well managed organ of state with
a history of unqualified audit reports. The continuous record of clean
unqualified Annual Reports is an indication of the great leadership this Agency
has had.

The transition from Ms Libby Lloyd (the former and founding CEO) to Mr
Mtimde (the current CEO) has been smooth and Mr Mtimde has taken the agency to
even greater heights.

Since the inception of the MDDA, the board has approved more than 229
different projects, with approximately more than R73 million in grants. This is
applauded by government and surely by all beneficiaries. It should be
comforting to all those who support this intervention financially and call for
more support.

All these achievements feed right into the MDDA's mandate, as it was
established through an act of Parliament to create an enabling environment for
media development and diversity in South Africa, where a diverse, vibrant and
creative media flourishes and reflects the needs of all South Africans. The
interventions of the Agency are meant to bring continuous communication and
information amongst all citizens of South Africa at their different levels,
which is the cornerstone of empowerment, transformation and development for all
citizens.

In conclusion, I would like to thank all present for your commitment into
developing and diversifying the South African media landscape. I also leave you
with this thought; a number of disadvantaged communities still do not have the
same access to media as the other communities in the "first economy".
Acceptably, there is a notable range of media products in the market but there
remains a limited choice for the majority of South Africans given the language
limitations. In particular, indigenous languages still do not feature
significantly in the print media and television sector.

Further, the MDDA support will remain needed on an ongoing basis in
poverty-stricken areas, due to economic realities in those areas. Going
forward, the government support the Agency's continued focus on ensuring that
all citizens can access information in a language of their choice and
contributing to the transformation of media access, ownership and control
patterns in South Africa.

On behalf of Government, I would like to thank the commitment by major
commercial media entities: Caxton Pty Ltd, Independent Newspaper Group,
Johncom, Kagiso Media, Media24, Midi Pty Ltd (etv), M-Net, PRIMEDIA Pty Ltd and
the SABC through their support in pursuit of the objects of the MDDA Act.

Finally, I would like to also take this opportunity to thank the board led
by Ms Msibi and CEO Mr Mtimde, the out gone CFO Mr Mbuyiseni Jafta and the new
CFO Mr Mshiyeni Gungqisa for their hard work and commitment. Again, the MDDA
has received a clean audit report from the Auditor-General.

I thank you.

Issued by: The Presidency
29 January 2009
Source: SAPA